MBA-302

CONTEMPORARY BUSINESS MODELS

Dr. M.Venkata Suryanarayana

M.Com., M.B.A., M.Phil., Ph.D., SET, EDP (IIM-K)
Assistant Professor

GITAM School of Business

Visakhapatnam

1
 • Co-creation :
• Collaboration vs. Co-creation
• Co-creation Cycle

UNIT- • Strategic Relationship Building

Process

III
• Co-creation Framework
• Structure, Process, and
Organizational Alignment
• Co-creation as a Competitive
Advantage.
 https://youtu.be/7-KE3XZHe5E
Co-creation
https://youtu.be/a1NU1Aq5Fz0

• Co-creation
• Include outsiders in the ideation and
development process.
• It may include :
• Prospective buyers
• Suppliers
• Competitors
• Industry influencers

• The goal
• To invent/design new products and processes.
Co-creation

• How do you co-create?

• Focus groups
• Surveys, and
• Polls
Co-creation
• What are the benefits of co-creation?
• Better products based on customer desires.
• In one study, 61% of businesses said that co-
creation leads to more successful products
• Better financial performance.
• 51% of businesses say co-creation improves
financial performance
• New and unexpected ideas.
• Making the consumer part of the creation
process.
• Removes barriers between industries.
Collaboration v/s Co Creation
Co-creation:
• Include outsiders in the ideation and development process.

Collaboration:
• The action of working with someone to produce something.

Most co-creation objectives can be classified into one of three categories:

• Generation
• Design and development of products and services.
• Refinement
• Refine one or more features of a target product or service
• To help improve its physical performance, leading to a better customer experience.
• Creation
• To develop a prototype of an entirely new product or service.
 Brand passion
• Customers with an extraordinary passion for their
Collaboratin brands.
g with Customer/segment demographics
customers: • Companies also use target audience demographics of
attractive or untapped market segments to select
participants for collaborative innovation projects.
Innovators and early adopters
• Innovators and early adopters disproportionately
influence an innovation’s subsequent acceptance by
the rest of the market.
Lead users
• Lead users are a highly attractive co-creation resource.
 Collaborating with professionals:
Tools and processes
• Resources such as software applications may be easily available.
Co-creation processes:
(1) Innovation Jams :
• These are large-scale internet-enabled brainstorming events that focus the creative
energy of participants on complex issues, such as:
• Identifying business opportunities for placing future strategic bets.
• Building businesses around customer solutions rather than technologies.
• Transforming an organization’s culture
(2) Development Tools
• Once ideas are selected, the focus shifts to development, refinement, and
commercialization.
• (a) Simulation. (b)Play and experiment. © Prototypes
Co-creation Cycle
 Strategic Relationship Building Process

A typical relationship-building process involves six steps.

• 1. The Dream: Discover the Opportunity and Organize it Internally
• 2. The Dance: Envision the Value and Assemble a Joint Team
• 3. The Date: Engage as One Team and Connect Emotionally
• 4. The Commitment: Finalize Value, Negotiate, and Close
• 5. The Long-Term Relationship: Deliver and Document Value
• 6. The Family: Expand Value
Strategic Relationship Building Process

•Fig. 3.1 How the co-creation cycle

grows at each step of the
relationship-building cycle. This
chart is also available at
http://www.eccpartnership.com/the
-co-creation-edge.htm
Structure, Process, and Organizational Alignment
Structure, Process, and Organizational Alignment
Organizational alignment

01 02 03
Align the employee Align employee Align the team with
with the role. roles within the other teams.
team.
 Co-creation allows firms to interact with
Co-creation as a consumers, for instance, through the Internet.
Competitive
Advantage. The product development process is faster.

The costs are reduced (once you start co-

creating, your investment risks decrease).

It also reduces marketing costs because of the

so-called “word of mouth”.